Intel to stop supplying chips in trays

All but the largest OEMs will get chips in boxes

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Intel has stopped supplying its processors in trays to all but its largest customers, it confirmed today. It will now supply product in boxes, according to a source at an Intel UK distributor. He said: "The reason is that it is easier to track sales, and remarks and it's also a branding solution. Only the very largest players are interested in tray supplies." But the move will also help cut down on gray market sales, he said. The packaging is far more bulky than trays, which can be easily transported across international borders. A representative from Intel confirmed the change had occurred. He said: "The really large OEMs will still get them in trays." Intel customers like IBM, Compaq, Dell and HP had sufficient volume to justify the continuing supply of trays. Only last week, Customs officers at London's Heathrow airport stopped an individual who was grey importing PII/400s in an attempt to evade value added tax (VAT), which currently stands at 17.5% in the UK. ®